U.S. stocks rally to close higher on M&A talk

4:03 pm ET Aug 22, 2007

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+0.030

U.S. stocks rally to close higher on M&A talk

NEW YORK
U.S. stocks rallied to close higher Wednesday to cap four days of
Federal Reserve-fueled gains as four major banks tapped the Fed for
funds and talk of deal-making further eased liquidity concerns in the
credit markets.

U.S. banking giants borrow $2 bln from Fed's discount window

SAN FRANCISCO
U.S. banking giants Citigroup Inc., J.P. Morgan Chase, Bank of America
and Wachovia Corp. said on Wednesday that they borrowed $2 billion from
the Federal Reserve as part of a new program set up last week to calm
the creaking financial system.

Lehman shuts subprime-lending unit, eliminating 1,200 jobs

SAN FRANCISCO
Lehman Brothers said Wednesday that it's shutting its subprime-mortgage
unit BNC Mortgage LLC, becoming the latest company to stop offering home
loans to less-creditworthy borrowers.

Ameritrade merger talks seen as lifting Schwab's fortunes

SAN FRANCISCO
A merger between E-Trade and Ameritrade might not bring the discount
brokerage industry's 800-pound gorilla off the mergers and acquisitions
sideline.

Is VMware already too expensive?

SAN FRANCISCO
After only a week on the public market, VMware Inc. has already seen its
share price soar more than 150% -- giving the young software maker a
higher market cap than many of its more-seasoned peers.